Digital Angel fends off former exec’s lawsuit

Digital Angel Corp. said Thursday that a federal jury in Florida has ruled against Michael Krawitz, the former CEO of a predecessor company who sued Digital Angel over breach of contract.

South St. Paul-based Digital Angel (OTCBB: DIGA), which makes implantable microchips that can track goods or animals, doesn’t have to pay any damages as a result of the jury verdict. Krawitz originally filed the lawsuit in June 2009, claiming Digital Angel hadn’t properly compensated him under his employment agreement.

“We are pleased to be able to put this baseless lawsuit behind us,” Digital Angel CEO Joseph Grillo said in a news release.

“This case, along with other legacy issues inherited from prior management, has been an enormous drain on current management’s time and resources and we are gratified that the jury found the lawsuit’s claims to be without merit by granting the Company an unqualified victory in the matter. This will be one less distraction for us as we continue to focus on improving the operational and financial performance of the Company.”

Krawitz served as CEO of Delray Beach, Fla.-based Applied Digital Solutions Inc. prior to its early 2008 merger with Digital Angel. Applied Digital was previously Digital Angel's largest investor. Krawitz claimed in his lawsuit that he was owed $1.2 million because Digital Angel was late providing him stock owned under his severance compensation, and announced a reverse stock split during a prohibited period. Krawitz claimed the company's actions prevented him from selling the stock for more.